Quality Ladder

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Quality Ladder

The practice in which a company gradually improves the quality of its products over time. For example, a company may make cheap, threadbare socks that are unlikely to last more than a few weeks. As it sells more socks, however, it may improve the quality such that it eventually makes warm, wool socks that keep feet warm no matter what the weather. It may be able to charge a higher price for the new socks. Quality ladders are associated with companies in developing nations.
References in periodicals archive ?
Always known for its lightweight, quiet, and user-friendly climbers with comfortable net seats, Ol' Man has added quality ladders, hang-ons, and tripods to its 2009 lineup.
Levine, NBER and Washington University, "Quality Ladders, Competition, and Endogenous Growth"
"There is still a lot of poor standard equipment out there and we will do everything it takes to educate people and get rid of poor quality ladders from workplaces.
Although this analysis should not be considered as a formal empirical test of Grossman and Helpman (1991), the approach of this paper is influenced by their quality ladders concept in economic growth.
These observations are in conjunction with the quality ladders in economic growth theory of Grossman and Helpman (1991).
Aiginger (1998) argues that as a country's output structure moves up the quality ladder, this is reflected in an increase in the unit value of that country's aggregate exports of manufactures.
2970, May 1989, and "Quality Ladders and Product Cycles," No.
An alternative formulation is to consider quality improvements in intermediate inputs, as in the "quality ladders" model.(12) Under this approach, new generations of inputs replace the old: computers are a good example.
Analyzing this pattern more systematically will provide an empirical counterpart to the "quality ladders" model.
Helpman, "Quality Ladders and the Theory of Growth," NBER Working Paper No.
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